Blog #5 – Contractor equipment: Pay attention to what you can see
Construction equipment is one of many possible warning signs of impending contractor failure, and one easily observed. No matter the state of equipment, there are always signs to watch for. If your contractor has no equipment, all old equipment, or all new equipment, it could mean they have no reserve equipment if they stumble on projects.
Here are some questions you should assess when selecting a contractor:
• Are the contractors’ pickup trucks in need of physical repair?
• Are the contractors’ pickup trucks in good mechanical condition?
• Are all the contractors’ pickup trucks old or new?
• Does the contractor own all new or all old equipment?
• Does the contractor own any construction equipment?
• Does the contractor utilize equipment to minimize labor expense and to decrease construction time?
• Does the contractor own equipment that is not being utilized?
A smart contractor will invest in equipment assets to maintain a competitive stance. If you answer yes to any of the above questions about a contractor you are considering hiring, it would be wise to ask management why.